What is the initial advertising contribution required when a Stretch Zone franchise opens?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
onthly non-refundable Royalty Fee equal to 7% of Gross Revenues. However, you must pay a minimum monthly Royalty Fee of $900 beginning on the 1st full calendar month after the Opening Date. THIS MINIMUM ROYALTY FEE IN NO WAY INFERS THAT YOU WILL EXPERIENCE GROSS REVENUES OF ANY PARTICULAR LEVEL.
- (c) Technology Fee. For providing you with a store e-mail account, a listing on our Website and a sublicense of the Stretch Net, Career Plug, Office 365, QuickBooks Online, KnetK, Factor 4, Predictive Index, Canva, and Perkville, we will charge you a monthly fee contained in the Operations Manual or otherwise provided in writing (currently $375 per month), which we may modify.
- (d) Opening Items. You must purchase from us your initial items of kits, bolsters and wedges from us.
- (e) Advertising Contributions to Media Fund. You must pay to us an initial contribution of $500 when your Franchise Business opens. You must also pay us a continuing monthly Advertising Contribution to the Media Fund in an amount equal to 2% of monthly Gross Revenues. We have the sole right to enforce your obligations and all other Franchisees that ma
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, franchisees must pay an initial advertising contribution of $500 when their franchise business opens. This initial contribution is earmarked for the Stretch Zone Media Fund, which is used to develop advertising and marketing materials for the benefit of all franchised and company-owned units.
In addition to the initial advertising contribution, Stretch Zone franchisees are also required to pay a continuing monthly advertising contribution to the Media Fund, which is equivalent to 2% of their monthly gross revenues. These ongoing contributions, along with the initial fee, support the creation and distribution of advertising and marketing materials at both the regional and national levels.
Furthermore, Stretch Zone franchisees are obligated to spend a minimum of $2,000 per month on local advertising within their designated market area (DMA). This local advertising expenditure is separate from the contributions made to the Media Fund and allows franchisees to tailor their marketing efforts to their specific geographic location. All local advertising materials are subject to Stretch Zone's approval to ensure brand consistency and compliance with company standards.
In addition to the initial and ongoing advertising contributions, Stretch Zone franchisees must also pay a Grand Opening Fee of $14,950 within 60 days of signing the Franchise Agreement. This fee is non-refundable and covers the assistance that Stretch Zone provides in connection with the grand opening of the franchise business, including pre-grand opening planning and a three-day grand opening plan.